Small and medium sized enterprises (SMEs) constitute a significant part of business activities of most countries and their successful performance is likely to have a significant economic impact. A performance measurement system (PMS) is one means used by organisations to ensure effective and efficient performance. Researching PMS and related issues in the SME context has attracted limited attention resulting in the number of studies in this area being inadequate and sporadic. Using survey and interview data, this study examines performance measurement practices in SMEs. The study aims to provide insights into the aspects of performance measured, how the information is used and factors inhibiting its use. The results show that most businesses in the sample measure overall, employee and product performance. A high emphasis is placed on financial aspects of organisational performance. However, with increase in size, there is a tendency to make greater use of non-financial measures. The study also found that SMEs with non-owner managers make greater use of multiple performance measures than those with owner managers. No significant difference was found between these groups in measurement of employee performance and frequency of measurement of performance. Information generated from the PMS is used to facilitate planning, control, and decision making. Time and resource constraints are noted as the main factors that inhibit effective use of performance measurement systems.
|Publication status||Published - 2006|
|Event||29th Annual congress of the European Accounting Association - Dublin, Ireland|
Duration: 22 Mar 2006 → 24 Mar 2006
|Conference||29th Annual congress of the European Accounting Association|
|Period||22/03/06 → 24/03/06|
- performance standards
- employees, rating of